Chicka Chicka Boom Boom is still my son's favorite book. It is so cute to listen to him try to read the book by himself (he's 2 1/2). For a craft, I made him a coconut tree and had him place alphabet stickers under it.
I also did this magnet activity with him. On his dry erase magnet board, I drew a coconut tree. As I read the book to him, he put his alphabet magnets on and then took them off the way it is told in the story :)