How to design applique shape around script

[Tricia]

I would like to know the trick for determining the shape of the applique behind an athletic type script. This type of design I have usually seen on athletic jerseys with team name. The applique outline kind of follows the shape of the "name" but not exactly. I've tried to push the pull comp to make the lettering "bloated" and then follow the edge to make a shape but it doesn't give me that "look".
I hope someone knows what I am trying to describe.