Cut the fabric into a square approximately 20cm by 20cm.

Fold this in half, corner to corner, and pin.

Now cut the ribbon into short lengths, and slip into one of the sharp folded corners. Pin in place.

Sew right round the open edge, leaving a small gap at the end of the open edge, opposite the ribbon. Make sure you sew the ribbon securely, as this is the birds tail.
I used blanket stitch, but it depends what fabric you are using, and whether you are using a machine, or handsewing it.

Stuff your chicken fairly full, but make sure it doesn't become stiff.

Cut a small triangle out of the felt. The size of this depends on how big you want the beak to be. Pin into the opening you left to stuff it, and sew firmly in place, sewing up the gap.
Sew on the buttons or beads for eyes.

Now this is the tricky step.
Push the head end of the bird up so there is a small tuck and fold in the the birds back. Pin and sew tightly.
You're done!