This is for training alone. You find a clear area or a real badminton court. The blue icon represents you and where you are supposed to be. The red icon is your AI opponent. You run to the area relative to the blue icon from the screen. The screen draws out a real badminton court. The blue icon also specify what kind of shot you should play and the shuttle icon is the location you should play to. The red icon is your imaginary opponent, it will play the next shot back to you from the shuttle location. Basically this is a more advance version of the six point shadow footwork drill people are used to doing. You can't predict the next shot so it simulates real game situation. This helps you improve your footwork better than just doing the shadow drill.
The reason there are shots like "fast drop" "fast clear" in this simulation because more advance player know you must use defensive footwork to retrieve these shots. So basically, the way you use your footwork should be based on the shot that was played. If the shot you are supposed to play is a Jump smash then you use offensive footwork. There are also "net kill" "fast drop" and etc.