A friend of mine made something similar a few years ago. I thought the concept was cute. It's great to give to a friend, co-worker etc. and is inexpensive to make. The recipient sees that you put some thought and in my case burned finger from the hot glue gun

Just kidding but be careful if using a hot glue gun.
So here's the deal. The following were purchased at Dollar General : The tree only $3.00 Wow!!! Ornament Hangers 75 CENTS (I used them on the 1st one) but found it challenging therfore on the 2nd tree I decided to use hot glue. Decorative Candy Cane Ribbon $1.00 . Deorative Bags 2 in a pack $1.00 4 AA Batteries $2.00 ( the tree only takes 2)
Then I purchased several miniatures . Depending on what you purchase prices vary.
There is no right or wrong way to make this craft. Pretty much I made some bows Hot glued. Took the miniatures and put some glue on the miniature.The key is to be creative. Other options for this craft : Use sealed candys with color, Add a gift card with some ribbon.
Here is what mine looked like. I'm going to add some tissue to the bag.