Edit in JSFiddle

$(document).ready(function () {
    $("#editor").kendoEditor({
    tools: [
            "bold",
            "italic",
            "underline",
            "strikethrough",
            "justifyLeft",
            "justifyCenter",
            "justifyRight",
            "justifyFull",
            "insertUnorderedList",
            "insertOrderedList",
            "indent",
            "outdent",
            "createLink",
            "unlink",
            "insertImage",
            "insertFile",
            "subscript",
            "superscript",
            "createTable",
            "addRowAbove",
            "addRowBelow",
            "addColumnLeft",
            "addColumnRight",
            "deleteRow",
            "deleteColumn",
            "viewHtml",
            "formatting",
            "cleanFormatting",
            "fontName",
            "fontSize",
            "foreColor",
            "backColor"
    ]
});
$("#color").kendoDropDownList({
    dataTextField: "vsName",
    dataValueField: "vsName",
    dataSource: [{"vsName":"Carter, Melvin (0)","dtLastUpdate":"\/Date(1410363005345)\/"},{"vsName":"Carter, Melvin (1)","dtLastUpdate":"\/Date(1410363005345)\/"},{"vsName":"Carter, Melvin (2)","dtLastUpdate":"\/Date(1410363005345)\/"},{"vsName":"Carter, Melvin (3)","dtLastUpdate":"\/Date(1410363005345)\/"},{"vsName":"Carter, Melvin (4)","dtLastUpdate":"\/Date(1410363005345)\/"}]
});
$("#addField").kendoButton({
    click: function(e){
        var editor = $("#editor").data("kendoEditor");
        editor.exec("inserthtml", { value: '{' + $("#color").data("kendoDropDownList").value() + '}' });
    }
});
});

<select id="color"></select>
<button id="addField" type="button">Add Field</button>

<div id="example">
    <textarea id="editor" rows="10" cols="30" style="width:100%;height:400px"></textarea>
</div>