This song can be done as a small movement activity where you tap the beat on different parts of your body. It can also be done as a shaker song. You can pass the shakers around the circle or shake them in a variety of ways. This can be used for a large movement activity (i.e. circle dance) with or without a prop like jingle bells.
It also works as a gathering drum song. This song is in the MT Bells collection if you are looking for other ideas.