In the ad, ‘Gavin the Gnome’ in his green mankini and flip-flops represents Asda. The other three big supermarkets are represented by more traditional gnomes.
'Great British Bake Off' host Mel Geidroych provides the voiceover, which claims the three competing supermarkets are all similar, whereas Asda is unlike the rest and wins on price.
Steve Smith, Asda’s chief customer officer, said: "We thought we’d hit a high with a disco dancing chick for Easter but we’ve loved bringing Gavin into the Asda family.
"He’s cool as a cucumber and we think he’s going to do a great job of communicating a serious message – that Asda will beat not match prices - in a really unique and fun way."
The ad was first aired during ITV’s Jeremy Kyle show and will also be aired during prime time slots including 'Harry Potter and the Deathly Hallows Part 2'.
Supporitng social media activity will feature an #AsdaGnome hashtag.