Estimate the profitability of Groupon promotion for American Apparel

READ a case – Groupon, and Answer this question:
Estimate the profitability of Groupon promotion for American Apparel (p.6). Specifically, dissect into the different benefits that Groupon promotion provides and examine which benefit provides the most important ROI.

Within a few years of its inception, Groupon received tremendous attention from consumers and investors and the company witnessed unprecedented growth. This attracted many competitors and clones, both in the U.S. and international markets. On Nov 14, 2011, Groupon completed its IPO. However, in less than a year, Groupon’s stock price dropped significantly which led everyone to question the viability of Groupon’s business model and its value to consumers and merchants.
Hint: use the data from the case to calculate ROI for using American the merchant American Apparel, and assess which of Groupon’s promised benefits provide the highest contribution to ROI (e.g., revisit, upsell) and the potential pitfalls of running a promotion (e.g., cannibalization of full paying customers)
(One more than one page, Double space, Times New Roman 12)