The girls have a felt board in their room. I converted one of their sliding closet doors into a felt board by taking it off the hinges, covering it with flannel, and putting it back in its place. It has been a fun play area and during the Holiday Season we often put a felt Christmas Tree on the flannel board for them to decorate however they see fit.
You could also decorate your own family Christmas tree as an activity to go along with this story if you haven't done so yet. Growing up we cut down our Christmas tree every year. It was one of my fondest, craziest memories of childhood. Everyone had a different opinion about which tree was THE tree. Everyone wanted it to look a certain way, and we would traipse around the field in search of one we all agreed upon. Having children actually had me wanting a fake Christmas tree (so I didn't have to worry about the pine needles or the hassle of a real tree) but this year we decided to keep our fake tree in storage and trek out to the field to cut our own. I was delighted to pass this memory on to my children. We took a tractor out to the field, drank hot cocoa, sang Christmas carols, and found the perfect tree for our family: not too tall, not too short, not too pokey, not too bare, not to thin, not too fat.....just right.
I don't have any pictures of it, but last year we dressed up like Mooseltoe. We put garland, necklace lights, bells, bulbs, ornaments, and star hats on our bodies to dress up like the moose in the story. The closest thing I found to it was this post from LalyMom I love the moose mustache!