I think you should go in illustrator, and play around more there. Make outlines of the word so that you have more freedom in manipulating the characters. Combine the o and the l, have some letters in upper case and some in lower, remove the stem on the K, fill in the "holes" in the o's and the a... I don't think you have understood what the task means, you should manipulate the letters alot more!
(ps: all my suggestions are just examples, just try and try and mess around with the letters until the word becomes unrecognisable :P)
Good luck!
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Warning: I might come across as a bitch, but Im really just trying to help.
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