Enjoyed this video about Trader Joes and how they avoid the paradox of choice. One thing not mentioned in the video is the fact that most of the competition in the spaghetti sauce section at a typical grocery store is multiple brands competing with the same basic sauce flavors (e.g., Tomato and Basil, Vodka, Alfredo, etc.). Since Trader Joes mostly sells house brands, they have no motivation to create multiple versions of the same sauce, hence dramatically reduced product selection.
If you want to know a big reason why there are so many varieties of spaghetti sauces, watch this classic TED video by Malcolm Gladwell.
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