My feelings are that it gets a bit lost where you have the background feathered out behind the logo, I think it would be stronger if the whole of the background on the "speech bubble" twinkle bit was white (not transparent) then the colours could just follow behind it (like on the second one)... I think that would make the actual branding stronger as its getting a bit lost to me at the moment... As for fitting with the product I wouldn't comment without knowing what it is (obvo some sort of night light) or knowing the brief, but looks like it would work from what we know...