I can say those mascots look stupid etc etc however I am not an 8 year old, and cannot put myself into an 8 year olds mind. These are the same kids who thought furby's, tickle me elmo's etc were cute and absolutely needed them for whatever reason.
I doubt the organisers are looking for the adoration of 20 somethings to maximise stuffed mascot sales of these weird looking creatures, they want the little eight year old girl tugging at their parents arm howling "buy me this!".
On top of that the branding is extremely specific which is what Olympic sponsors want. When you see these two mascots you immediately think London 2012. No matter what, whether it is a positive association with these mascots or not, your mind immediately goes to the Olympics. Someone has already posted a picture of Heidi and Howdy, and that was more than 20 years ago, and still that mental association exists.
I'm not telling people how to think or what to think, but how marketing works is not always a "please the masses" endeavor. The Panago ads, the Telus hippo ads, the weird Skittles ads, it's all just a method to park their product in a different part of your psyche.
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