Place cooking parchment paper or waxed paper on cookie sheet; place pretzels on paper for feet of Santas.
In 1-cup microwavable measuring cup, microwave candy coating uncovered on High 35 seconds, stir. Continue heating 10 seconds at a time until smooth after stirring.
Using wooden skewer inserted into 1 flat end of marshmallow, dip marshmallow into melted coating. Allow excess to drip off; sprinkle with red sugar, and place on top of pretzel. Place 2 miniature chocolate chips on front for buttons (where feet extend). Insert another marshmallow on skewer; dip again, allow excess to drip off. Sprinkle with coconut; sprinkle with small amount of pink sugar for face; add eyes (miniature chocolate chips) and nose (red cinnamon candy). Place on top of other marshmallow. Set aside to cool, or refrigerate. Repeat with remaining marshmallows.
When coating is firm, attach hats (foil-wrapped chocolate candy bells) tassels (miniature marshmallows) and bags (gumdrop halves) with small amount of melted coating. Use toothpick to make small opening for arms (candy-coated chocolate candies); insert arms into marshmallows with small amount of melted coating.