Once SQL Server is installed the selected collation setting
applies to all system databases. For user databases collation can be changed
after database is created but for all system databases it remains the same as
the one selected during SQL Server installation. There are two ways to do it.
First is to reinstall and second is to rebuild system databases
Following command can be used to rebuild
Setup /QUIET /ACTION=REBUILDDATABASE /INSTANCENAME=MSSQLSERVER
/SQLSYSADMINACCOUNTS=TESTSERVER\administrator /SAPWD=SA_password /SQLCOLLATION=Latin1_General_CI_AS