This is a live-action commercial parody from an episode of South Park. In this episode, one of the protagonists, Kyle, is having kidney problems and needs a new one. A holistic medicine craze sweeps South Park, and Kyle's parents decide to forgo bringing Kyle to a real, modern hospital. Instead, they bring him to a "healer" that plays herself off as a Native American witch doctor named Miss Information (get it?). She tells Kyle's parents not to bring him to a real doctor as they only want to make money, and to instead buy her products as they'll actually heal him. Cheech & Chong, playing themselves as Miss Information's Native American business partners, finally expose Miss Information for the fraud she is and encourage Kyle's parents to seek real medical treatment for Kyle.
This clip is, clearly, a parody of the aforementioned holistic medicine craze. A tampon made of Cherokee hair is awfully absurd, and I do hope no one would ever think this is a real ad (although one could be easily confused since it does air in a part of the episode that is directly after an ad break if you're watching it on TV). Some people take the whole "all-natural, down-to-earth" thing a little too seriously, and this clip (along with the whole episode for that matter) is meant to satirize that.
I think you could also call this a parody of tampon ads from the 1980's and 1990's. From what I remember, ads from that era always seemed to include a young female accompanied by her female parent, guardian, role model, or somebody of that nature. The two characters would always discuss this feminine issue in a much more uplifting, less awkward manner than moms and daughters do in real life (at least I think, I never had to have that conversation so I wouldn't know). Ultimately, the product would be brought in as the solution to all their problems and all would be well again. This parody follows that outline to a tee, just with the added ridiculousness of South Park.