We will begin with the Franklin Gothic Heavy lettering font with a point size of 228.
Type the word Design or whichever word your prefer. Click on Expand.
Now we want to use the Envelope Distort option of Make with Warp.
Go to Envelope Distort > Make with Warp.
Use the Arc and set Bend to 30%.
Choose the Mesh tool.
And create lines at the sides and lower bottom of the ‘I’.
Select the Direct Selection tool.
Expand the selection by dragging the point downward.
Choose the Eraser tool.
Using the bracket keys you can change the size of the eraser. Erase some areas of the lettering.
Reduce the size of the eraser to the smallest possible size. Then erase the line in the lettering.
Choose the Knife tool.
Cut the lettering in thirds.
Click on the Live Paint bucket.
Then, open the Earthtone swatches.
Give colour to the areas of the lettering.
Make a copy of the lettering and drop it below the current lettering. Give the outline a stroke weight of 7 pts.
Now place the lettering, given above, slightly to the right. You will get an interesting result.