Online marketing boosting economy: rural-based e-commerce growing.

• Author: Kalytiak, Tracy
• Position: TECHNOLOGY

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On a beautiful summer day nine years ago, Lauren Padawer made a discovery that changed her life.

ALASKA GLACIER MUD CO.

She and some friends were rafting on the Copper River when they stopped at Abercrombie Rapids, a narrow slot brown bears favor because boulders make it easier for them to pluck salmon traveling through the rapids. There are pools left by the flooding and receding waters of the river.

"We stopped to play on the rocks, have fun," Padawer said. "We decided to go swimming. As soon as I dipped my foot into a clear glacial pool, it just sank into the mud. The other people had been there before and said of course it was time for a mud bath, so we sprawled out in the sun taking a mud bath."

The Cordova-based founder of Alaska Glacial Mud Co. now has sold close to 15,000 3.5-ounce jars of that mud for $35 each, thanks to Alaska Marketplace grants totaling $60,000 and--most critically--her ability to grow her business online.

The Alaska Marketplace competition for ideas is modeled after the World Bank Development Marketplace and managed by the Alaska Federation of Natives. Investing partners include BP, ConocoPhillips, Denali Commission, Rasmuson Foundation, General Communications Inc., TDF, Chugach Alaska Corp., Doyon Limited, Bristol Bay Native Corp., National Bank Cooperative, Wells Fargo, Alaska Manufacturing Extension Partnership. Alyeska Pipeline Services, Shell and North Star Group.

The Internet has become a critical tool for people establishing businesses in rural places far from Alaska's road system and other resources more commonly found in urbanized areas.

"The challenges you face working out of Cordova, I think the Internet was part of the solution," Padawer said. "Maybe I'm a child of the Internet generation. I don't think I could have accomplished what I have without the Internet. Researching the competition, doing market research, figuring out what trade shows there were, getting information out about the product--it's been an incredible tool. Without the Internet, I think doing the marketing research would have taken a lot longer and wouldn't have been as comprehensive. I'm not even sure how I would do it, looking back on it."

Padawer launched her company in March 2006 and first began bringing her product to market the following year. She focuses her marketing efforts on four sectors: spas and salons, natural-product stores like Natural Pantry, skin-care boutiques and apothecaries and gift shops.

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"Those four market sectors apply to the entire U.S. and international orders," Padawer said. "I think we've put a lot of effort into marketing outside Alaska. Our marketing budget is between $25,000 to $30,000 a year. Only 10 percent is spent in state, but we have the most return on investment in state."

Padawer, who was born in St...