You can but you will need to use red candy color not regular gel colors for cake decorating. Candy colors have oil in them which you need when coloring chocolate. The picture to me looks like a milk chocolate ganache not semi sweet or red. Would they just let you cover the letter in red fondant?
The more I look at it milk chocolate ganache with a little red. Maybe make a small batch and play with the color.
It is definitely red because it is Alabama but I could do it in red fondant I just thought it might be really hard to get it covered.
Ditto on the oil-based candy colors. Gel colors have water in them and will seize your chocolate up.
Other than that.....
ROOOOOLL TIIIIIIDE ROOOOOLL!
I would cool, level, frost the top of the cake for the 'A' and then freeze it hard. I would have made a pattern for the 'A' and then a board cut to fit. Once frozen, cut out the 'A' using the board, continue putting it in and out of the freezer if needed. After it is cut, place the frozen 'a' on the board then onto a cooling rack. To cover the cake, I would use two-three cans of white canned frosting that has been microwoved until thin and pourable (usually 40 seconds for one can at a time for me), mix in the red food coloring. Pour the melted frosting over the the top and especially the edges. Tap the rack on the table to coax the frosting down. Once set, reheat the drips and pour again. I do this for petite fours and it works great!!! When dry, it has a matte finish and can be touched lightly with no markings.
I carved a large A for a birthday cake and covered it with fondant and it worked wonderfully. I used the tips of my fingers to smooth and a fondant tool.
Both of those sound great! I will be practicing over the next couple of days on the "A" until I get it right so I will try most of the suggestions and see which one works best. I actually found a silicone "A" pan from an Alabama store and it will be here tomorrow so I will bake a few and try the different methods and see what happens. Wish me luck because this cake is due Sunday the 4th. Thanks for all the help I have received on this. I knew it looked a little tricky that is why I came to my CC family for advice.
Fianlly finished the ALA cake. I am not too happy with it but they loved it. Posted pics in case anyone wants to see the finished product. Thanks for all the help with this one.