Tanuki refers to the Japanese raccoon dog (
Nyctereutes procyonoides viverrinus). In Japanese folklore, it has a reputation as a mischievous if slightly silly animal with oversized testicles. The animal itself seems to be obscure outside of Japan, but the mythical version may have entered Western popular culture when a Tanuki ("Tanooki") suit appeared in Super Mario Bros. 3.
My interpretation looks suspiciously like a teddy bear, despite the prominent genitalia. I'm not comfortable coming this close to cute.