The ad, which breaks next week, continues the "price stars" idea launched last August. It features a rapper rhyming to the camera in the style of an R&B music video and is set at a Miami pool party full of gorgeous people looking cool and stylish.
The party soon gets disrupted by a series of red starbursts, each revealing how little the clothes cost.
The dancers and singers at the party try to dispose of the starbursts in various ways. Finally, the rapper sticks one on his turntable to prevent the guests from discovering he paid just £3 for his vest. The ad finishes with the line: "Design by Cherokee. Price by Tesco."
The ad was art directed by Simon Butler and written by Gethin Stout.
The director was Brewster MacWilliams at Biscuit Films, represented in the UK by Independent.
Media planning and buying is by Initiative Media.
Ian Crook, the brand communications and trade planning director at Tesco, said: "These new ads continue the successful campaign that we launched last August. They really deliver on the Cherokee proposition."